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V1236-18 11 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto positivo

60% tax reduction on residential rent applies if the contract aims to satisfy permanent housing needs

A landlord inquired whether the 60% reduction on net rental income could be applied to a property leased to a student for more than one year. The Directorate General for Taxes (DGT) ruled that it is applicable, as the arrangement constitutes a residential lease rather than a seasonal one.

The question raised

Application of the reduction provided for in Article 23.2 of Law 35/2006.

The DGT's ruling

The 60% reduction provided for in Article 23.2 of Law 35/2006 is applicable to leases of real estate intended for residential use. In this case, as it is a lease for a period exceeding one year with the purpose of satisfying the lessee's permanent housing need, it is not considered a seasonal lease. Therefore, the reduction is applicable.

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